Congestion pricing in New York City

Congestion pricing in New York City, also called the Central Business District Tolling Program, started on January 5, 2025. It applies to most cars and trucks entering the central business district area of Manhattan south of 61st Street. The goal is to encourage commuters to use public transportation instead of driving. This helps reduce traffic congestion and pollution.

The idea for congestion pricing was first suggested in 2007 and was part of the 2019 New York State government budget. Tolls are collected electronically and change based on the time of day, the type of vehicle, and whether a vehicle has an E-ZPass toll transponder. The Metropolitan Transportation Authority hopes to get $15 billion to improve subways, buses, and commuter rail systems.

New York City has some of the worst traffic in the world, even though it has a rapid transit system that runs all day and night. For many years, people have suggested charging fees or limiting vehicles in the Manhattan central business district, especially at crossings of the East River between Brooklyn and Queens.

After some delays and changes to the plans, congestion pricing was finally started. It quickly led to fewer cars on the road, shorter travel times for everyone, more people walking, and better air quality in the city. There were also fewer accidents involving pedestrians and safer streets overall.

Tolling program

The congestion pricing zone covers most of Manhattan south of 61st Street. Drivers do not pay if they stay on FDR Drive or the West Side Highway. Drivers on the Brooklyn Bridge and Queensboro Bridge are also exempt if they use certain ramps.

The base toll for passenger vehicles was set at $15 once per day, but was later reduced to $9. Other vehicles could pay up to $36 per day, and taxis and ride-shares pay per trip. Vehicles using certain tunnels could receive credits or discounts on the toll. Low-income residents get a 50% discount after their first 10 trips each month. Some vehicles, like emergency vehicles and those carrying disabled passengers, are exempt from tolls.

Equipment

License plate scanners are placed at each entrance to the congestion zone. These scanners, installed by TransCore, are on traffic lights and above the streets. They look for E-ZPass transponders and take infrared photographs of license plates to determine the vehicle type. This helps avoid bright lights in the neighborhood. If a license plate is hard to read, it is reviewed by hand. The system also uses learning tools to sort vehicles into the right toll groups.

Early plans

Further information: History of congestion pricing in New York City

The bridges connecting Brooklyn, Manhattan, Williamsburg, and the Queensboro Bridge over the East River used to have tolls. These tolls were removed before the Great Depression.

Ideas to bring back tolls were suggested many times over the years, in 1933, 1952, 1966, 1968, and 1971.

In the 1970s, Mayor John Lindsay wanted to limit cars in Lower Manhattan and charge tolls for crossing the East River. But his successor, Abraham Beame, did not support this idea. Later, Ed Koch, who followed Beame, also tried to put limits on cars entering Manhattan.

More recently, congestion pricing was suggested many times but did not happen. Mayor Michael Bloomberg suggested it in 2007 as part of his plan called PlaNYC, but it did not move forward. Another idea was brought up by traffic commissioner Sam Schwartz in 2015, but the rules to make this happen were never approved.

Approval and implementation efforts

2017 proposal

In 2017, people in the city complained a lot about slow and broken subways. Governor Andrew Cuomo made a plan to charge tolls to help the subways and make traffic better. He looked at plans from London and Stockholm. The plan would charge drivers to enter part of Manhattan. It would help pay for better trains and buses. The plan would use open road tolling to charge drivers without making them stop.

In October 2017, New York State made a group called Fix NYC to find ways to fix the subways and traffic.

Initial recommendations

In January 2018, Cuomo shared more details. He said drivers would pay tolls when entering part of Manhattan, depending on the time of day and their vehicle. Cars could pay up to $11.52, trucks up to $25.34, and taxis between $2 and $5 per trip during busy times. Only drivers crossing the Brooklyn Bridge or Queensboro Bridge and leaving immediately would not pay. Taxis and ride-share cars would start paying in one year, and cars and trucks in 2020. The tolls could raise up to $1.5 billion each year.

The toll was not added to the state budget in March 2018. But a charge was added for taxis and ride-shares in Manhattan below 96th Street.

In January 2019, Cuomo talked about adding congestion pricing to the state budget. In February, Bill de Blasio said he supported the plan. They agreed to start congestion pricing by December 2020. The money would go only to the city's trains and buses. In March 2019, Cuomo added the plan to the state budget.

Final components

In March 2019, New York City passed a plan to be the first U.S. city to charge congestion pricing. Vehicles would pay once each day. It would start in 2021 at the earliest.

The plan would be managed by the Triborough Bridge and Tunnel Authority. A board would decide toll amounts by late 2020. The money would mainly help the Staten Island Railway, New York City Subway, and MTA Regional Bus Operations. Some would go to the Long Island Rail Road and Metro-North Railroad. Emergency vehicles and some drivers with disabilities would not pay. The plan would report on traffic and air quality after it started.

The plan included free passes for people living in the charge area who earn less than $60,000 a year. The West Side Highway would be free, and drivers using the Henry Hudson Bridge would get a credit.

Reaction

Some people in Queens and Brooklyn did not like the plan because they would have to pay to drive to Manhattan. They lived far from subway stations. Some politicians, like David Weprin, said it was unfair to middle-class drivers. Bill de Blasio at first did not support it. He wanted a tax on wealthy people instead.

In May 2018, candidate Cynthia Nixon supported both Cuomo’s plan and another tax idea.

Many people in Brooklyn and Queens did not want to pay tolls to drive to Manhattan. But Uber and others supported the plan.

Further planning and delays

In October 2019, the MTA chose a company to build the toll system. In February 2020, the federal government might block the plan. They needed to decide what kind of review to do. The COVID-19 pandemic in New York City made fewer people use buses and trains. Some thought more people would drive after the pandemic. The federal government still had not decided by November 2020.

Federal review

In 2021, the new president said he would help the plan. The federal government allowed an environmental review in March 2021. The MTA had to talk to officials from Connecticut and New Jersey.

In mid-2021, the MTA said it had enough money from taxes and did not need the toll money right away. But Bill de Blasio wanted to start the tolls by July 2022. In August 2021, two New Jersey men tried to stop New Jersey drivers from paying the toll. The federal government approved the review in August 2021.

The MTA held hearings in September 2021 and shared possible toll amounts. Tolls could range from $9 to $23. Emergency vehicles and drivers with disabilities would not pay. There would be a tax credit for low-income people.

Final approval and opposition

In 2022, some people still did not like the plan. Others protested. In May 2023, the federal government approved the plan. The MTA could start setting toll amounts. The plan would start around May 2024. The money would help improve subways and reduce pollution.

Some people in New Jersey and New York still did not like the plan. Lawsuits were filed to try to stop it. The MTA said many projects and jobs could be at risk. In February 2024, the MTA said most of the toll system was ready. The charge would start on June 30, 2024. The MTA would allow people to ask for toll exemptions.

Other cities like Boston, Chicago, Washington D.C., and San Francisco looked at the plan for their own cities.

Postponement

Announcement

On June 5, 2024, Governor Hochul said she would pause the start of congestion pricing that was planned for June 30. She was worried it might hurt the city's economy as it was getting better. The state had spent a lot of money getting ready for the program. They planned to use money from the tolls to improve public transport. With the pause, lawyers said they didn’t expect congestion pricing to start by June 30.

The night before, news reports said Hochul was thinking about delaying congestion pricing. These reports said her decision was also because she was worried about how it might affect some political races. Even though the efforts to gain control of an important political group didn’t work, they did win some seats because of the pause. Some people thought her decision was mostly about politics.

Reactions

Many groups, including those who care about the environment and better public transport, criticized Hochul’s decision. They said that without the money from the tolls, improving the transport system would be harder. Some business groups did not like her idea to increase taxes on businesses to help pay for transport improvements. The city’s leader said he agreed with Hochul, but some of his team members spoke out against the decision.

The leader of the transport authority was surprised by the decision. At first, he tried to find a way to keep the plan going, but later he said he had considered leaving because he was unhappy with the delay.

News reports said that Hochul’s decision might need to be approved by the transport authority’s leaders. Some experts thought she might be challenged in court for making the decision on her own. One expert said the decision might break laws about reducing pollution.

After the pause was announced, a survey of likely voters who support the toll showed that half approved of the delay and about a third did not. Many thought the toll would make their trips worse, but more supported it after learning it would pay for specific projects. Some people also held events to show their support for the toll.

Impact on capital program and federal approval

The transport authority said that Hochul’s decision could delay many important projects, like making stations easier for everyone to use, because they would have to focus on keeping the system running. The authority would have to change its plans and present a new one soon. The authority also said that, by law, the toll needed approval from the government, the city, and the state, and that it could not start without this approval.

The final approval needed signatures from the state and city transport departments and the authority. On June 8, news reports said the government had not yet given its final approval. The authority’s leader said they were working to reduce their plans and would not give up on congestion pricing. He said the state’s leader told the state transport department not to sign the approval. The government held off on approving the authority’s plans, and the state’s leader warned that the authority might have to delay or cancel some projects. The authority’s leaders also decided to delay $16.5 billion worth of projects. There were worries that the transport system might have big problems again because of the delays. A report later in 2024 said the authority would need much more money than planned. The pause also created a big gap in the authority’s budget. News reports said the delays had already cost a lot of money.

Pro-congestion charge lawsuits

A group of experts, advocates, and others said they planned to challenge Hochul’s pause in court. The city’s financial leader said he would start a lawsuit in July if the toll did not start. Two lawsuits were started by different groups. Hochul said that a big political event later in 2024 should decide if the toll should start. In September 2024, a court judge decided not to stop the pause when the government asked to dismiss these lawsuits.

Proposed replacement of revenue

To replace the money that would have come from the tolls, the Governor suggested increasing a tax on some businesses in the city. Her idea was to raise the tax from 0.6% to 0.825% for businesses that spend more than a certain amount each year. There would also be a smaller tax cut for smaller businesses. The state’s leaders did not agree to this idea, so the Governor suggested another plan to give the authority $1 billion from the state’s money. But the state’s leaders did not support this plan either.

Revival of congestion toll

Later in June 2024, state leaders started talking with Hochul about starting the toll again, but with lower prices. They wanted to start it before the end of the year because a leader had said he might stop it if he was elected later in 2024. In August 2024, a group advising the authority said that none of the other ideas would make as much money as the toll would have.

By October, Hochul was thinking about starting the toll again. After that leader won the election, she suggested starting the toll with lower prices: $9 during the day and $2.50 at night, which was about 60% of the original price. The price could go up to $12 by 2028 and then to the full $15 by 2031. The lower price was chosen so that they wouldn’t need more reviews about how it would affect the environment. The authority voted to start the toll on November 18, 2024, and the government approved it three days later. Some political leaders said they would try to stop it, and others had concerns about how it would affect parking and prices in the city.

Remaining lawsuits

In November 2024, there were still several lawsuits going on against the toll; by December, there were ten.

One lawsuit was started by a town that said the authority did not follow the rules for getting public feedback. The court asked the authority and the Governor to appear in court in January 2025.

In December, the Governor said she had offered New Jersey some money if they dropped their lawsuit, but New Jersey’s leader said the offers were not good enough. The court decided that the toll could start while the lawsuits continued. Another court decision also said the toll could start.

On December 30, 2024, a federal court judge said that the toll could start even though New Jersey had sued. New Jersey asked for more information about how the toll would affect the environment and later asked a higher court to stop the toll, but the court said no. In April 2025, another judge dismissed some lawsuits against the toll. The town’s lawsuit was dismissed later that year.

Implementation

The toll started on January 5, 2025, at midnight. It began on a Sunday when there was less traffic, making it easier to fix any problems. For the first two months, there were no extra fees for late payments. During January, riders of Lyft could get a $1.50 credit for trips through the zone, which could be used for future rides or with the city's Citi Bike system.

After the toll started, many changes were noticed. Traffic, accidents, parking problems, and noise complaints went down. More people started using buses, taxis, and subways. Business activity and the number of visitors in the toll area also went up.

Traffic decreased in the first week compared to the same week in 2024. Travel times got better, especially for trips between Manhattan and New Jersey. By July 2025, there were fewer cars each day in the toll zone. Travel times improved, and delivery companies started using smaller vehicles to save on toll costs.

Bus travel times got better, and more people started using taxis and express buses. Subway ridership went up from 2024 to 2025. Walking increased in the toll zone, and traffic-related accidents dropped.

After the toll started, Broadway ticket sales went up. Most restaurant owners said their business stayed the same, but some said their costs went up or that fewer people were coming in. Sales tax money in the city also went up.

In July 2025, studies showed that air pollution levels went down in most places after the toll started. A study in 2026 found that vehicle emissions dropped because there were fewer trips and traffic moved faster.

In the first four months of 2025, the toll collected money that was used to improve bus services and fund other projects. By December 2025, the toll had collected a large amount of money.

Some people and groups opposed the toll. There were discussions about possibly stopping the toll, but legal actions kept it in place. By March 2026, a court ruled that stopping the toll was not allowed.